Taxation of Emerging Tobacco Products

The Report examines the emergence of new tobacco-based and nicotine products and how governments have adapted existing tobacco taxation strategies to address them. The Report assesses current tobacco product and vaping taxes in U.S. states, as well as the implementation challenges for taxes on electronic cigarettes and other vaping products. The Report recommends taxing vaping products at rates equivalent to cigarettes until the Food and Drug Administration (FDA) determines that some of these products are modified risk tobacco products, which are likely to be of less harm to public health. If/when such a determination is made, taxing at a lower rate would be appropriate.

 

A Policy Brief based on this Report can be found here.

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February 2020

Authors:
  • Frank J. Chaloupka, John A. Tauras